CenterPoint Energy 2014 Annual Report Download - page 126

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Summarized quarterly financial data is as follows:
CenterPoint Energy’
s determination of reportable business segments considers the strategic operating units under which CenterPoint Energy
manages sales, allocates resources and assesses performance of various products and services to wholesale or retail customers in differing
regulatory environments. CenterPoint Energy uses operating income as the measure of profit or loss for its business segments.
CenterPoint Energy’
s reportable business segments include the following: Electric Transmission & Distribution, Natural Gas Distribution,
Energy Services, Midstream Investments and Other Operations. The electric transmission and distribution function (CenterPoint Houston) is
reported in the Electric Transmission & Distribution business segment. Natural Gas Distribution consists of intrastate natural gas sales to, and
natural gas transportation and distribution for, residential, commercial, industrial and institutional customers. Energy Services represents
CenterPoint Energy’s non-rate regulated gas sales and services operations. Midstream Investments consists primarily of CenterPoint Energy’
s
investment in Enable and its retained interest in SESH. Other Operations consists primarily of other corporate operations which support all of
CenterPoint Energy’s business operations.
Prior to May 1, 2013, CenterPoint Energy also reported an Interstate Pipelines business segment, which included CenterPoint Energy’
s
interstate natural gas pipeline operations, and a Field Services business segment, which included CenterPoint Energy’s non-
rate regulated natural
gas gathering, processing and treating operations. The formation of Enable closed on May 1, 2013. Enable now owns substantially all of
CenterPoint Energy’s former Interstate Pipelines and Field Services business segments,
116
(16)
Unaudited Quarterly Information
Year Ended December 31, 2014
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter (3)
(in millions, except per share amounts)
Revenues
$
3,163
$
1,884
$
1,807
$
2,372
Operating income
295
186
233
221
Net income
185
107
143
176
Basic earnings per share(1)
$
0.43
$
0.25
$
0.33
$
0.41
Diluted earnings per share(1)
$
0.43
$
0.25
$
0.33
$
0.41
Year Ended December 31, 2013
First
Quarter
Second
Quarter (2)
Third
Quarter
Fourth
Quarter
(in millions, except per share amounts)
Revenues
$
2,388
$
1,894
$
1,640
$
2,184
Operating income
332
223
244
211
Net income (loss)
$
147
$
(100
)
$
151
$
113
Basic earnings (loss) per share(1)
$
0.34
$
(0.23
)
$
0.35
$
0.26
Diluted earnings (loss) per share(1)
$
0.34
$
(0.23
)
$
0.35
$
0.26
(1)
Quarterly earnings per common share are based on the weighted average number of shares outstanding during the quarter, and the sum
of the quarters may not equal annual earnings per common share.
(2)
Effective May 1, 2013, CenterPoint Energy contributed CenterPoint Midstream to Enable. See Note 2(b) and Note 9 for further
discussion on the formation of Enable and CenterPoint Energy’s investment in Enable, respectively.
(3) CenterPoint Energy recognized a $29 million
deferred income tax benefit upon completion of its tax basis balance sheet review.
(17)
Reportable Business Segments